Providing Banking Education

Awareness should be the key to creating successful Conditional Cash Transfers in the United States. A 2008 study shows that a person can save up to $40,000 during their employment lifetime. Also, with limited assistance in investment strategy, a person can generate up to $360,000 over a 40 year career (Banking on Wealth). By educating families on the long-term benefits of banking effectively, people can feel empowered to create stability in their financial futures. Since many financial advisors are beginning to generate socially beneficial investments for their clients, these same financial advisors could be solicited to provide advice to lower income families and individuals on simple ways to grow their finances. Providing simple statistics and showing the short term benefits of using a bank account can be a convincing factor. For example, car insurance and utility companies often offer a discount to customers who set up automatic withdraw for monthly bills. Many banks offer free checking and free ATM withdraws. Low balance credit cards are also offered to people with bad or no credit. All of these benefits can create a stable foundation for a low income individual or family to build their credit and learn the benefits of banking with an established institution.

The roadblocks are obvious. Financial institutions must be convinced to make this social investment and also provide educational materials for this part population. Banks must also be convinced of the long term benefits of recreating the America middle class.